Dollar Tree boosts profits, beats analyst estimates
Chesapeake-based Dollar Tree Inc. reported Tuesday a jump in profit in its third quarter, beating analysts’ estimates.
The discount retailer, which completed an $8.5 billion acquisition of Family Dollar in July 2015, reported a profit of $171.6 million, or 72 cents per diluted share in the third quarter. That is more than double the company’s profit of $81.9 million, or 35 cents per diluted share, in the third quarter last year.
Excluding special items, Dollar Tree earned 81 cents per share, which beat analysts’ estimates of 78 cents per share, according to Yahoo! Finance.
“Our results demonstrated a solid performance in our Dollar Tree segment, continued meaningful progress in our integration of Family Dollar, and our ability to refinance and pre-pay a portion of our outstanding debt in order to reduce future interest costs,” Dollar Tree CEO Bob Sasser said in a statement.
Last year’s results included expenses related to the acquisition of Family Dollar. The bottom line also benefited from lower merchandise and freight costs.
Sales during the quarter increased 1.1 percent to $5 billion, from $4.95 billion during the same period last year, although last year’s revenues included sales from 325 Family Dollar stores that were divested. Same-store sales increased 1.7 percent.
During the quarter, Dollar Tree opened 153 stores, expanded or relocated 39 stores and closed 10 stores. The company also opened 42 former Family Dollar store locations as Dollar Tree stores.